Logistic Regression Analysis of Advertising Effectiveness
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Questions and Answers

What is the purpose of the logistic regression analysis conducted by the company?

  • To understand the relationship between advertising spending and sales target achievement. (correct)
  • To analyze the impact of sales target on advertising spending.
  • To determine the total advertising budget for hitting the sales target.
  • To predict the exact sales amount for each advertising channel.
  • What does the coefficient value of 0.074 for TV advertising in the logistic regression output indicate?

  • TV advertising has no impact on the likelihood of meeting the sales target.
  • The coefficient value is not relevant to the likelihood of meeting the sales target.
  • Increasing TV advertising by 1 unit increases the likelihood of meeting the sales target. (correct)
  • Increasing TV advertising by 1 unit decreases the likelihood of meeting the sales target.
  • What does a Z-score of 4.861 for TV advertising suggest in the logistic regression output?

  • The Z-score is not relevant to TV advertising's impact on the likelihood of meeting the sales target.
  • TV advertising has a significant negative impact on the likelihood of meeting the sales target.
  • TV advertising has a significant positive impact on the likelihood of meeting the sales target. (correct)
  • TV advertising has no impact on the likelihood of meeting the sales target.
  • How does the coefficient value of -0.016 for Newspaper advertising affect the likelihood of meeting the sales target?

    <p>Newspaper advertising has no impact on the likelihood of meeting the sales target.</p> Signup and view all the answers

    What is the purpose of creating the outcome variable 'target_met' using the rule: if sales > $14,000 then 1 else 0?

    <p>To measure the effectiveness of each type of advertising in hitting the $14,000 sales target.</p> Signup and view all the answers

    What does a P-value of 0 for the constant in the logistic regression output indicate?

    <p>The constant has a significant impact on achieving the sales target.</p> Signup and view all the answers

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